Making Chips Podcast for Manufacturing Leaders

Why AI Isn't the Answer for Quoting: The Risks of Using ChatGPT in Manufacturing, 450

Feb 10, 2025
Jason Ray, Co-founder and CEO of Paperless Parts, tackles the pressing issue of using AI in manufacturing quoting. He highlights the risks of general-purpose AI like ChatGPT, discussing data security concerns and the dangers of 'AI hallucinations' that can lead to costly errors. Instead, he advocates for domain-specific AI designed for accuracy and efficiency, emphasizing the importance of human expertise. This enlightening conversation reveals why embracing the right technology is crucial for staying competitive in the fast-paced world of manufacturing.
Ask episode
AI Snips
Chapters
Transcript
Episode notes
ANECDOTE

Quoting Stress Is A Longstanding Problem

  • Nick recalls his dad stressed over stacks of blueprints when quoting, showing quoting pain is generational.
  • He says quoting remains a massive bottleneck for modern manufacturing leaders.
ANECDOTE

A Viral Example Shows What Slow Quoting Costs

  • Mike describes a viral comparison showing a Chinese supplier beat a US shop on speed, lead time, and price for the same part.
  • The example highlights how slow quoting and high lead times can lose business to overseas suppliers.
ADVICE

Centralize Estimating With Specialized Tools

  • Integrate a focused estimating tool like Paperless Parts to centralize quoting and reduce manual steps.
  • Use integrations (e.g., with ERPs) to move winning quotes into production seamlessly.
Get the Snipd Podcast app to discover more snips from this episode
Get the app